Tech Surge Powers Market Higher as Investors Await NVIDIA Earnings

Stocks extended their rebound for a second straight session, propelled by strong technology leadership that lifted the major averages throughout the day. The S&P 500 climbed 0.8%, the Nasdaq Composite jumped 1.3%, and the Dow Jones Industrial Average gained 0.6%. Notably, the S&P 500 reclaimed and held above its 50-day moving average, a key technical level it had briefly broken earlier in the week.

Technology shares once again set the tone. The sector led all others with a 1.8% advance, supported by broad strength across software and semiconductors. The software group staged a notable recovery from Monday’s selloff, with AppLovin leading gains, while Salesforce and Snowflake advanced ahead of closely watched earnings reports that are expected to gauge whether sentiment toward enterprise software can stabilize amid ongoing AI disruption concerns. Workday also reversed early losses to finish higher after reporting results.

Attention remained firmly fixed on NVIDIA, whose earnings release later in the day is widely viewed as the week’s most consequential event for the AI trade. The stock rose in anticipation of another strong report, helping drive gains across semiconductor shares and lifting broader mega-cap benchmarks.

Leadership from the largest companies was evident in the divergence between index measures: the market-cap-weighted S&P 500 significantly outperformed its equal-weighted counterpart, underscoring the outsized influence of mega-caps on index performance.

Mega-cap strength also supported communication services and consumer discretionary stocks. Netflix posted a sharp gain, while Tesla and Amazon provided leadership that offset weakness across other discretionary names. Housing-related stocks struggled, however, after cautious guidance from Lowe’s raised fresh concerns about demand in the housing market, weighing on builders such as Lennar.

Financial stocks delivered one of the strongest performances of the day as investors rotated back into banks and lenders following recent weakness. Citigroup and Capital One posted solid gains, while Coinbase surged after announcing plans to expand into stock trading for U.S. customers. Strength in cryptocurrencies also lifted Robinhood Markets.

Losses were contained among the handful of sectors that finished lower. Industrials pulled back after a strong prior session, and consumer staples lagged as investors rotated toward growth-oriented areas of the market.

Market breadth improved modestly as the session progressed. Small- and mid-cap stocks erased early losses to finish higher, signaling a gradual expansion in participation beyond mega-cap leaders.

Overall, the session reinforced a constructive tone following Monday’s weakness. With the major averages now mostly positive for the week, investor focus shifts squarely to the latest wave of earnings reports—most notably NVIDIA’s results—which could determine whether the rebound in technology and AI-linked stocks has further room to run.

Our FTinvest 11 model portfolio declined 1.03% to close at 1,009.23, marking its sharpest single-day pullback in recent weeks. The move extends the ongoing consolidation phase following the portfolio’s all-time high of 1,039.51 earlier this month.

Despite today’s decline, FTinvest 11 remains comfortably above the 1,000 milestone and continues to hold solid year-to-date gains. Short-term volatility is a normal feature after strong rallies, and the portfolio’s disciplined, value-focused structure remains intact as it navigates this period of recalibration.